IP Status: Gaming

The release of Five Nights at Freddy's shows that tapping into gamer fans and audiences is a core way to find new distribution and monetization.

The video game industry is a multi-billion dollar business, with 2022 revenue estimated to be around 347 billion US dollars. Earlier this year, we also saw the value of IP with Microsoft acquiring Activision Blizzard King for $68 billion, and now owning franchises like Call of Duty, Diablo, and World of Warcraft, just to name a few. Just as Microsoft understands the power of these games and their fans, so too does Hollywood and they’ve been trying to crack the code ever since.

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The days of studios failing to capture the spirit of video game IP (intellectual property) are over. This year solidified it with arguably the worst video game movie ever, Super Mario Bros., getting its redemption through an animated version that brought the charm of the characters to life while raking in over $1 billion at the box office.

Studios trying to tap into the fan base of video games is definitely not new, however, it does seem like they have figured out the recipe for movies and streaming.

This week saw the release of Five Nights at Freddy’s in theaters and streaming on Peacock, making $78 million domestically (US) and $130 million globally, easily beating the expected $50 million opening. I watched it Friday night for our family movie night as my kids are both massive fans of the games. The release was earmarked on our calendars as soon as it was announced. We were not alone.

Even horror maestro Mike Flanagan himself saw the success of the movie through the eyes of his son’s love of the game(s) and movie adaptation.

https://twitter.com/flanaganfilm/status/1718674846563946526

For gamers and parents of gamers, these movies become a core memory attached to something or someone they care about. It’s more than just a show or movie.

The Power of Established Fandoms

Whenever a preexisting fanbase exists for IP, it offers not only the opportunity not to have to reinvent the wheel, but it gives you a built-in base to tap into. For studios who love to reboot things, this offers the advantages of a reboot with the excitement of it being reimagined in a different medium. Something old meets something new.

But it isn’t easy, as demonstrated by the many gaming adaptations that haven’t met the mark. You need to think and create like a fan. You have to show reverence and show that you aren’t just capitalizing on something that seems popular. Gamers can spot the difference between love and greed.

If you can capture the magic of what makes the games so beloved by their fans, you stand to make a lot of money from it. From Netflix’s “The Witcher” to the “Sonic the Hedgehog” and “Detective Pikachu” movies, there is money at the end of the rainbow (road).

Players have spent hours, hundreds of hours in some cases, with these characters and stories. They know their backgrounds, and motivations, and have emotional connections to them as they have navigated through the stories as these characters when they’re based on RPGs (role-playing games). It isn’t enough to get the look of the character right. Fans will question casting, story elements, how much should be from the source material vs. net new, and if it embodies the spirit of the world.

Distribution Across Platforms

The adaptation of video game IP also opens doors for a multi-pronged distribution strategy. Studios can release movies and TV series in traditional theaters and on streaming platforms, providing fans with the flexibility to enjoy their favorite franchises in the comfort of their homes or on the big screen. This multi-platform approach maximizes accessibility and drives revenue through various channels.

HBO Max saw this come to fruition earlier this year with its adaptation of The Last of Us, with it becoming one of the top streamed shows for the service.

https://twitter.com/DomTheBombYT/status/1655301479253831680

RPGs offer an immersive experience that translates well to movies and shows. These games, as compared to other gaming styles, are deeply story driven and because there are gaming mechanics of choice, you see the ramifications and consequences of characters’ choices, just like players do as they complete the game. The ending you get, or the opportunities you have is greatly dependent on the choices you’ve made previously. It gives these choices stakes, and it means that since there are multiple ways for the game to play and end, adaptations don’t necessarily have to match up with the same choices that the players took. It provides some level of surprise and nuance.

And the buzz continues.

Amazon’s Prime Video is releasing its Fallout show in 2024, creating a frenzy of anticipation for fans of the gaming series. There are already fan conversations across social with their hopes and dreams for the series. Fans want to be “winked” at with Easter eggs and moments only diehard fans will recognize while also seeing new chapters of their beloved franchises. The adaptations become an extension instead of a replacement.

https://twitter.com/falloutonprime/status/1716468771521434080

Monetization Beyond the Console

Gaming adaptations have lost a lot of their risk factor, with vocal fans at the ready to help showrunners and directors get it right. They might share fan casting or highlight the core moments they hope to see on screen. Social listening can turn into Hollywood R&D quite quickly and can foster goodwill when it’s heard. The Sonic the Hedgehog movie fan tweets about his initial look and how the studio responded, turned what could have been a disaster into a massive win that made fans feel heard and empowered.

The financial prospects of video game IP adaptations extend far beyond ticket sales and streaming subscriptions. From merchandise, such as action figures and apparel, to spin-off video games and mobile apps, the potential for monetization is immense. Even established video game franchises can receive a significant boost in sales when a movie or TV show is released, illustrating the symbiotic relationship between these entertainment mediums. This is amplified when there are new fan creation crossover opportunities.

While video game adaptations initially cater to existing fans, they also aim to attract new audiences. A well-crafted storyline and compelling characters can captivate viewers who may not have touched a controller before. This broader appeal not only serves to expand the gaming community but also secures a more extensive fanbase for the entire franchise.

Both the gaming industry and TV and streaming win by collaborating on mediums that can drive traffic to each other.

More importantly, though, fans become the center of this initiative to tap into their attention, money, and joy.

Here’s to the fans.

CG